DAY 42 – Creating a real Fair Trade value

Looking at the quinoa market from the producer perspective, the Fair Trade producer earns 4% of the total value of the quinoa they produce. Producers however, consistently say this is not enough. To cover production costs including their own labor, they need to earn 800Bs a quintal ($114 for 220 pounds) or $.51 a pound. Plugging this amount into the current quinoa production costs it brings us to a FOB of $2,778 per ton. This is 6% more than the current Fair Trade price. To continue down the value chain through distribution to wholesale re-packagers down to consumer retailers, the final product arrives at a consumer price of $8.12 a pound – a 12% increase over the current Fair Trade, organic quinoa price.

The proposed pricing for a pound of premium, heritage variety gourmet organic quinoa sold to consumers for $8.12 a pound and providing a living wage for farmers.

My UMass students conducted a market study of organic Bolivian Quinoa Real with the Mark of Original and found consumers willing to pay up to 25% more for a premium quinoa product that has higher nutritional values and cultural connections. The Bolivian Quinoa Real is hand processed and 87% is blessed – both at planting and harvest – for the earth mother (Pachamama) to bring forth abundance, love and compassion for the farmers and the grain itself.

Being here in the Quinoa Real fields, I am noting that amongst the standard red, white and black varieties of Quinoa Real, there are many eco-types and sub-varieties with distinct properties and culinary uses which US consumers would value. Some like the white Kaslala are great for bread making and baking while others like the white Toledo cook quickly. Currently these are mixed and sold simply as “white quinoa” at low market prices. From a marketing perspective, it appears there exists a unique, profitable, premium market for the rare, distinct varieties of Quinoa Real that Bolivian farmers carefully plant and harvest, but get mixed together in the general export sales of quinoa by color. It seems that consumers are ready for the option – the challenge is to create the new market space and investment for this.

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